Starting up your own company is an exciting time for would be entrepreneurs such as you. It is a great feeling when you receive the paperwork which confirms that your new company is legal and ready to trade. Then the hard work begins – and also hopefully the success.
However, to reach this stage, you must have completed all your preparation, which takes time to carry out correctly. The following is a guide to company creation UK.
You obviously consider that you have a great idea for your business, but the work you must do before registering it as a going concern includes:
- Having a clear vision of your business model and how you intend to run the company
- Writing a thorough, realistic and convincing business plan. This should include financial forecasts; market appraisal; unique selling points; future planning etc. Take your time as this document will serve you well for years as a reference point and guide to ensure you keep on track. In addition, it can be essential if you wish to attract funding and investment
- Carrying out detailed market research to ensure your product or service is viable and will be sought after in the marketplace
- Having relevant finance in place for start-up and until you start making profits
- Sourcing suppliers for required products, equipment, stationery etc
- Locating business premises and staff (if required)
You must appoint directors and shareholders if creating a private limited company. A company secretary can also be appointed, but is not mandatory. Most first time business owners choose to register as a private limited company, as it will protect its members from excessive personal liability if the company fails.
Most people these days choose to register their business using a company formations agent. There are many professional and experienced ones to be found online. Research each one to find the ideal company to work with. Most provide packages tailored to suit every type of company requirements, from basic to complete business packs. They provide a quick and efficient company creation UK process and will guide and assist you with any queries with the completion of the required documentation etc. Most also offer post registration services to help you during the early months of trading if you need them.
Have all the information to hand when you start the formation process, including:
- Company name and registered address (this must be a physical address in the same country as the registration)
- A minimum of one director (over the age of 16 and not disqualified from being a director) and one shareholder
- Share details – Memorandum of Association
- Guidelines of how you intend to operate the company – Articles of Association
Ensure that your company name does not contain any offensive or suggestive words. Avoid implying any association with local or central government. The name must be unique to be approved by Companies House. Your formation agent can check this for you. Once registered, the business will be known as (company name) Ltd or Limited.
As soon as your company has been legally registered, you will receive electronic copies of your Certificate of Incorporation, Memorandum and Articles of Association and Share Certificates for all shareholders. Keep these documents safe.
A few days after you receive your Certificate of Incorporation verifying the legality of your business, you will receive a unique taxpayer reference from Her Majesty’s Revenue and Customs (HRMC). They will require details about the company and, at this point, you can register an online account for your tax returns and corporation tax payments.
This following information was brought to by Company Formations 247. As a leading UK Company Formation agent, they specialise in registering new companies with companies House.